Lebanon considers dollar payments for electricity amid ongoing challenges

Lebanon considers dollar payments for electricity amid ongoing challenges

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2023-08-22 | 11:00

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Lebanon considers dollar payments for electricity amid ongoing challenges

The caretaker Prime Minister, Najib Mikati, swiftly adjourned the Cabinet Committee meeting on electricity at the Serail on Monday.

The session remained undecided on the KALLES electricity ship, which docked off the Zahrani power plant since Friday. The vessel, which has incurred a daily charge of $18,000 due to its unloaded cargo, remains a pressing issue for Lebanon's finances.

The postponed session is now rescheduled for the upcoming Monday, potentially exacerbating the incurred losses. Until then, Lebanon will incur at least $126,000 as a penalty for the vessel's sea stoppage instead of the previously agreed upon seven days.

Additionally, the cost of the cargo, amounting to $29 million, will be factored in, with funds available in the Electricité du Liban (EDL) 's account, albeit in Lebanese lira. There is a dispute over converting it into dollars due to the limited currency availability from the BDL.

During the session, the General Director of EDL, Kamal Hayek, proposed collecting electricity fees in dollars to avoid potential disputes, given that all the institution's payments are in dollars.

According to LBCI's sources, a study is being prepared within the next two days, which will be presented to the